CNE financed this new equipment purchase through a combination of debt and equity. On January 1st, CNE received a $800, 000 loan from a commercial bank at 5% interest. Starting on February 1 st principal and interest payments of 11, 700 are to be paid on a monthly basis over 7 years. Also, in January CNE issued $750, 000 of common stock. In this offering, 100, 000 shares were issued at a par value of $3 per share. Using an amortization schedule, in the month of April, what will be CNE Inc. interest payment on its $800, 000 loan? In the month of April what is the remaining dollar amount balance on CNE Inc.'s loan?
CNE financed this new equipment purchase through a combination of debt and equity. On January 1st, CNE received a $800, 000 loan from a commercial bank at 5% interest. Starting on February 1 st principal and interest payments of 11, 700 are to be paid on a monthly basis over 7 years. Also, in January CNE issued $750, 000 of common stock. In this offering, 100, 000 shares were issued at a par value of $3 per share. Using an amortization schedule, in the month of April, what will be CNE Inc. interest payment on its $800, 000 loan? In the month of April what is the remaining dollar amount balance on CNE Inc.'s loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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CNE financed this new equipment purchase through a combination of debt and equity. On January 1st, CNE received a $800, 000 loan from a commercial bank at 5% interest. Starting on February 1 st principal and interest payments of 11, 700 are to be paid on a monthly basis over 7 years. Also, in January CNE issued $750, 000 of common stock. In this offering, 100, 000 shares were issued at a par value of $3 per share. Using an amortization schedule, in the month of April, what will be CNE Inc. interest payment on its $800, 000 loan? In the month of April what is the remaining dollar amount balance on CNE Inc.'s loan?
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